Business conglomerate Adani Group's edible oil firm Adani Wilmar has filed draft papers with markets regulator Sebi to launch its initial public offer (IPO) to raise up to Rs 4,500 crore for funding its expansion.
Adani Wilmar, an equal joint venture between Adani Group and Singapore-based Wilmar, was formed in 1999. It sells cooking oils under the Fortune brand as well as various other food products like rice and sugar. The company, which aims to become a major FMCG player, has an annual turnover of more than Rs 30,000 crore.
In a regulatory filing, Adani Enterprises said Adani Wilmar Ltd (AWL) has filed Draft Red Herring Prospectus (DRHP) with Sebi for its IPO.
"The proposed listing of AWL on the stock exchanges will comprise an IPO in the form of fresh issue of new equity shares by AWL for an amount of up to Rs 45,000 million (approximately USD 600 million)," Adani Enterprises said.
"There will not be any secondary offering," said Adani Enterprises, the flagship firm of the Adani Group.
Adani Wilmar proposes to use the net proceeds to expand its existing manufacturing plants, set up new facilities, repayment/prepayment of borrowings, fund strategic acquisitions and investments, and general corporate purposes.
"The proposed listing is intended to further the growth of AWL's operations by increasing its market visibility and awareness among current and potential customers," the filing said.
"As there is no assurance that the Proposed Listing will proceed, shareholders and potential investors are advised to exercise caution when dealing with the securities of the company," Adani Enterprises said.
In November last year, Gujarat-based Adani Wilmar completed 20 years of operations of its flagship 'Fortune' brand.
AWL's Deputy CEO Angshu Mallick had said the company's revenue is more than Rs 30,000 crore, of which edible oil business contributes around Rs 24,000 crore.
Currently, six Adani Group companies are listed on domestic bourses. Apart from Adani Enterprises, other listed ones are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone. Adani Wilmar also sells soap, handwash and hand-sanitisers.